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Dubai: Gold prices jump nearly Dh3 per gram to over 9-month high

The Fed delivered a quarter-percentage-point rate increase on Wednesday after a year of larger hikes

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Gold prices extended gains on Thursday to touch their highest in more than nine months, after the Federal Reserve raised interest rates by an expected 25 basis points and chairman Jerome Powell's comments were read as dovish by the market.

Spot gold was up 0.2 per cent at $1,953.76 per ounce as of 9.10 am UAE time.

In the UAE, the 24K gold price jumped nearly three dirhams per gram at the opening of the markets to trade at Dh236.5 per gram as compared to the previous night’s close of Dh233.75 per gram.

Similarly, the other variants also opened higher with 22K trading at Dh219.0 per gram, 21K at Dh212.0 and 18K at Dh181.75.

The Fed delivered a quarter-percentage-point rate increase on Wednesday after a year of larger hikes. However, Powell warned of further monetary policy tightening while noting the progress on disinflation, which he said was in its early stages.

"Although Powell said rate hikes might continue, the market expects the Fed not to be drastic anymore, which is supporting gold. However, we will soon see some profit booking and bullion continues to face resistance at the $1,960 level," said Brian Lan, managing director at GoldSilver Central.

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